Litecoin hash rate has dropped 60 percent since Halving
Three months after halving in August 2019, the Litecoin hash rate continues to decline as the profitability of the mining reaches all-time lows. This massive decline in mining activity signals another negative aftertaste, as it was criticized at the beginning of the year that developer activity had declined sharply.
Litecoin Miner leave the project
Data from BitInfoCharts.com shows that since halving in August 2019 the Litecoin hash rate has increased by more than 60 percent has fallen. These numbers are a continuation of the downtrend seen since summer 2019 in Litecoin Mining.
This massive decline in the hash rate indicates a significant slowdown in the miner interest in the sixth-ranked cryptocurrency. A drop in the hash rate to this extent is an alarming security risk for the network itself. Falling hash rate numbers correspond to a lower participation in the network.
That the drop in hash rate after halving comes even more threatening to Altcoin, which is referred to as “silver to bitcoin gold”. The halving of the block premium should theoretically act as a scarcity mechanism, making each LTC unit even more valuable.
Profitability of Litecoin Mining
Analysts typically identify halving as the trigger for increasing the market value of a PoW cryptocurrency. However, the Litecoin miners do not seem to share this enthusiasm, which means they are likely to use their resources to mine other cryptocurrencies. According to BitInfoCharts.com, the profitability of Litecoin mining is at a historic low.
Despite notable successes such as the Litecoin Lightning Network and Atomic Swap, the attractiveness of LTC has not increased significantly overall. Litecoin was among the top ten in the off-season at the beginning of the year. The spot price even rose to 60 $, but has since gone up by about 60% .
The problems for Litecoin go beyond the price development and extend to development efforts. Litecoin founder Charlie Lee has admitted that nobody is interested in contributing to Litecoin’s crypto code.
Text Proof: bitcoinist